In seeking money from Congress, GM acknowledged its mistakes and candidly explained how close they are to collapse. WSJ’s Jeff McCracken and Dennis Berman discuss GM’s bailout request.
12/2/2008
Consumer Credit outstanding fell $14.8b in Sept seasonally adjusted, almost $5b more than expected and marks the 11th month in the past 12 of declines. At $2.456T outstanding, it is 4.9% below the record high in July '08. After a flat reading in Aug, (didn't fall b/c of the CARS program), non revolving debt outstanding fell by $4.9B. Revolving (mostly credit cards) balances outstanding fell by $9.9B. To fully put into perspective today's data, look at the current level of consumer credit (doesn't include mortgages, the biggest chunk of consumer credit) relative to GDP. As of Q3, it totaled 17.2%...
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December 3rd, 2008 at 2:56 pm
Soul bearing is so heartening in this world of spin, deceit, and lies.
It appears the UAW too may be moving in that direction; this is all good for the auto industry – maybe too late, but still a positive development.
December 3rd, 2008 at 2:58 pm
ooops, s/b “baring” I believe.
December 3rd, 2008 at 3:16 pm
I am sure I would vote to have Chrylser die..they are a private company, and have resorted to fear mongering….
http://biz.yahoo.com/ap/081203/meltdown_autos.html
Chrysler exec: failure could spark depression
If this is the best John Snow and the other idiots who bought this from Daimler can do as far as reasoned discourse, then let them die. Besides they are a private company now…
Sell the damn thing to UAW for six bits, and let the employees work it out.
You guys do realize, all we are hearing now is “Give us billions BY THE END OF THE YEAR, or we are dead meat.”….I really am disgusted by this form of pleading…they are not a charity, they all are businesses and very poorly run businesses for many and many a year…
December 3rd, 2008 at 3:40 pm
Market capitalization of GM and Ford is about $10B combined, with GM being worth only about $3B of that. Chrysler sold for $7.5B last year, and is undoubtedly worth less than that today. So how does a $34B loan for the big three compute when they’re worth less than half of that?
So if the car makers want a bailout, shouldn’t US citizens get ownership of them? Give the shareholders 1/10 penny a share and take ‘em over. If they’re that vital to the economy, then they can’t be left in the hands of individuals anymore and the 1/10 penny a share is more than their current shareholders will get in the “only other option,” bankruptcy, which is apparently inevitable otherwise, according to the CEOs. If they become profitable, then the taxpayers benefit. And if they fold, the taxpayers still get a lot of assets. If they won’t take that option, then I’m not buying the line that it’s the only other option. They are all claiming that they have no other options, yet act like they are in a bargaining position. I’m not big on the idea of nationalizing these companies, but where’s the collateral on this loan? I say we test this, and see if their situation is really as dire as they say it is.
December 3rd, 2008 at 3:56 pm
Whoopee.
The UAW has agreed to help rearrange the deck chairs on the Titanic.
December 3rd, 2008 at 7:17 pm
Suddenly everybody is an expert on the auto industry.
The US is the only country in the world that would let it’s auto industry die.
December 3rd, 2008 at 7:25 pm
Agreed, mudpuppy.
Most of the time, I have an Austrian economics viewpoint, but unless we all want to ride the bus or the train, we should work something out to save the Big 3. UAW MUST go.